Account takeover detection is an important part of any company’s cyber security strategy. Not only does it help to identify fraudulent activities, it also allows organizations to mitigate the consequences of an attack. These attacks are particularly damaging for eCommerce websites, as the high chargeback rate can result in significant losses.
When a user’s account is compromised, fraudsters can use the information to make unauthorized payments. They can also perform duplicitous actions, such as changing the billing address or changing the password. This activity can lead to lost funds, loss of customer trust, and damage to the company’s brand.
Fraudsters also can use an account for other sinister purposes, such as laundering money. Since a compromised account is often rich in information, detecting and preventing account takeover is crucial. One way to do this is to create a list of known bad devices, and block them at the source. A common indicator of an incoming ATO is a large number of login attempts from an unknown device.
For financial institutions, account takeover is a major concern. If you suspect an attack, alert your vendors and business partners as soon as possible. Also, keep in mind that your clients may not be flagged as accounts that have been taken over. Instead, they may be clients that have always failed to log in.
If you have a site that requires biometrics, your customers can be vulnerable to man-in-the-middle attacks. A malicious hacker can position themselves between you and your institution and intercept your SMS with a one-time code. To protect yourself, you should implement a two-factor authentication method to secure your accounts. In addition, ensure that your Domain Name System (DNS) is secure.
The good news is that a number of solutions are available to prevent account takeovers. The account takeover detection first line of defense is to develop strong passwords. Passwords that include alphanumeric characters and lowercase and uppercase letters are ideal. Another option is to use a password manager. You should check your accounts regularly to ensure that your passwords are secure. Additionally, you should monitor the activities of your users, including their IP addresses.
Account takeover is more prevalent than you think. It can affect all kinds of companies, including eCommerce websites. Many businesses aren’t sure how to detect and stop this type of fraud. Identifying the most effective strategies to combat the issue is a key component of any organization’s security strategy.
Detecting an ATO is no simple task, however. Many businesses don’t even know when an attack occurs. Furthermore, few companies can identify the specific type of attack. While identity theft is a well-known example of this kind of fraud, there are a few other types of account takeover.
ATO is a complex problem that requires a comprehensive approach to prevention. Monitoring the cybercriminal underground is the best way to guard against this type of attack. Using a bot detection solution is another way to combat the threat.
Businesses that have been hit by an ATO have experienced a variety of negative consequences, from customer churn and a loss of trust to increased chargebacks. Depending on the magnitude of the attack, the consequences can be dire.